Credit question
Jun 1, 2016 | 2:17 pm
#1
Original Poster
Join Date: May 2015
Posts: 145
Credit question
If I open an account, get the bonus, and then close the account (all in theory here), how much is my credit hurt? I realize there is a small impact from the initial hard pull when i apply for the card, but I know that credit agencies look at length of accounts, so would getting rid of accounts that have been open only a short time a positive? Or is the closing just frowned up?
Thanks
Brad
Thanks
Brad
Jun 1, 2016 | 6:16 pm
#2
Join Date: Apr 2013
Location: Lehigh Valley, Pennsylvania
Programs: Milege+, SkyMiles, AAdvantage, HHonors Diamond, Marriott Gold
Posts: 1,748
We really need more info on your credit experience to advise you. If you have no credit history it will weigh much more heavily against you than of you have already established a healthy history.
Jun 1, 2016 | 6:51 pm
#4
Join Date: Apr 2013
Location: Lehigh Valley, Pennsylvania
Programs: Milege+, SkyMiles, AAdvantage, HHonors Diamond, Marriott Gold
Posts: 1,748
As long as you don't open and close quickly several cards in a row, you should be fine. Hard pulls drop you score a few points. Meanwhile closing older accounts hurts your AAOA much more than closing recently opened accounts.
Jun 1, 2016 | 7:07 pm
#5
FlyerTalk Evangelist
Join Date: Aug 2009
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Posts: 13,807
As you have mentioned, the initial HP will harm you short-term until it can be removed from your report. However, the early closure has a bigger impact to AAoA. Since AAoA is taken as an average, the more frequent and aggressive you are doing this, the more extent of the long-term damage. Don't forget the age of your existing cards will reduce this long-term damage. That's why if you just begin, you should try to convert your accounts instead of closing to preserve the AAoA.
Jun 2, 2016 | 4:51 pm
#6
Flyertalk Posting Legend Moderator: Credit Card Programs, American Express, Capital One, Chase, Citi, Diners Club, Eco Travel, Signatures
Join Date: Jun 2003
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Posts: 51,864
Jun 3, 2016 | 9:13 am
#7
Join Date: Jul 2013
Posts: 384
A score in the mid 700's doesn't really tell us enough to say whether or not you have a profile that can handle churning. Look at your AAoA and calculate how new accounts would impact it.
Jun 3, 2016 | 12:08 pm
#8
Original Poster
Join Date: May 2015
Posts: 145
There are always some trade offs, as bottom line - attractive offers are not free.
As you have mentioned, the initial HP will harm you short-term until it can be removed from your report. However, the early closure has a bigger impact to AAoA. Since AAoA is taken as an average, the more frequent and aggressive you are doing this, the more extent of the long-term damage. Don't forget the age of your existing cards will reduce this long-term damage. That's why if you just begin, you should try to convert your accounts instead of closing to preserve the AAoA.
As you have mentioned, the initial HP will harm you short-term until it can be removed from your report. However, the early closure has a bigger impact to AAoA. Since AAoA is taken as an average, the more frequent and aggressive you are doing this, the more extent of the long-term damage. Don't forget the age of your existing cards will reduce this long-term damage. That's why if you just begin, you should try to convert your accounts instead of closing to preserve the AAoA.
Jun 3, 2016 | 12:41 pm
#10
Flyertalk Posting Legend Moderator: Credit Card Programs, American Express, Capital One, Chase, Citi, Diners Club, Eco Travel, Signatures
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA, IHG & Marriott Platinum; DL & HH Gold
Posts: 51,864
That's not the policy. If you have opened five new accounts in the past 24 months Chase will decline applications for certain types of card accounts. Closing those accounts does not change anything, Chase can still see that you opened them. I suggest that you read the Wikipost at the top of this thread:
http://www.flyertalk.com/forum/chase...5-present.html
http://www.flyertalk.com/forum/chase...5-present.html